Litigated Water Claims, ‘Assignment of Benefits’ (AOB) to Top Citizens 2017 Challenges

Florida Trend – News Release

Rising water claims and “out of control” litigation threaten the Citizens Property Insurance Corporation’s long-term financial stability and will stifle efforts by Citizens to offer premium breaks to policyholders in 2017, Citizens leaders stressed during a governing board meeting on Wednesday.

Barring significant changes, including possible legislative action on assignment of benefits, non-hurricane losses will continue to chip away at Citizens’ reserves and could result in policies returning to the state’s insurer of last resort as private insurers face similar challenges.

“Without significant reform, litigation, water claims and AOB pose a serious threat to the financial position of Citizens,” said Chris Gardner, Chairman of the Board of Governors. “This is not a sustainable situation.”